Executive Secretary of the Food and Beverage Association, Sam Aggrey, says the business community is not feeling the effects of the recent appreciation of the cedi, insisting that the dollar gains mean little without corresponding tax relief.
“Dollar depreciation is not being felt at all. We look at it from two angles. Considering the past, when the cedi depreciated from ¢3.80 to about ¢16, you can imagine how much businesses and investors lost—along with the country itself,” he said on JoyNews’ PM Express on Thursday, July 3.
According to him, while the cedi’s appreciation is positive on the surface, many businesses are still recovering from earlier financial shocks.
“So, for the cedi to appreciate again, you have to consider how much was lost during the depreciation. It’s like being hit with one bullet that strikes you twice. It’s complicated. Some may see it as a gain, but for others, it’s a loss,” he noted.
Aggrey said that for businesses to truly benefit from the cedi’s recovery, the government must step in with meaningful tax reforms.
“It’s a good thing that the cedi is gaining strength, but we’re looking to the government to reduce certain taxes so people can feel the real impact,” he explained.
He argued that until government cushions importers through policy adjustments—especially at the ports—businesses will continue to suffer despite the cedi’s improved performance.
“If we say the cedi has gained, and we leave it at that, we risk reversing the gains. Whatever was done to strengthen the cedi must be sustained,” he stressed.
Aggrey also pointed to earlier policy decisions—particularly tax hikes at the ports—that, in his view, contributed to the cedi’s previous depreciation. He called for a complete overhaul of the tax system.
“Let’s not forget what triggered the depreciation of the cedi in the first place. It was the introduction of certain taxes and levies at the ports. That’s where you really see the impact,” he said.
He recalled a meeting with then-Finance Minister Ken Ofori-Atta, where concerns were raised over plans to fully restore benchmark values.
“We told him, ‘This will be a disaster for the country. Take it easy and let the cedi stabilise.’ But he didn’t listen. He went ahead and increased taxes, which raised import duties—and then the cedi started falling again.”
Aggrey concluded with a firm call for policy change.
“We need to take a bold step to reverse some of these policies. There are almost 21 different taxes imposed on a single item. We need an overhaul of the tax system to bring real relief to businesses.”
Source: Myjoyonline
